A Comparative Case Study Between Different Mnc S In India Business Essay

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LITERATURE REVIEW ON THE IMPACT OF NATIONAL CULTURES ON RECRUITMENT AND SELECTION IN MNC's AND THEIR EFFECTS ON PERFORMANCE- A comparative case study between different MNC's in India

2.0 Introduction:

In 1960's and 1970's many researches were done on recruitment and selection which proved that the quality of the techniques used and suggested were not robust. The use of meta-analysis i.e evaluation of the recruitment and selection process, in 1980's made few improvements and which has helped in the later years that was about to come. In early 1990's many of the organisations started to think about the changes they should be adopting in recruitment and selection, and the organisation which failed to do so was certainly ceased to exist. The changes were mainly adopted to suit the organisational environment and to compete with the other organisations in the world as there was a rise in customer expectations and open markets. Many of the organisation started believing that recruiting qualified person and appointing the right person for skill oriented jobs would definitely increase the organisations performance rather than believing in other features such as new product innovation which can produce short term performance increase which can be quickly adopted by the competitors and assimilate to their own.(Cooper and Robertson,1995) "People make the place and people set pace".( Herriot, 1989).The rapid change in 1990's made the organisation to increase their performance and developments in new technology with the help of high calibre recruits. But in few cases the change was so rapid and there has been insufficient opportunity to evaluate and consider its impact and value.(Searle, 2003) Recruitment and Selection, and placing people in position where they can perform effectively, appears to be a universal goal for organisation around the world, as a mismatch between jobs and people can substantially reduce the effectiveness of other human resource activities.( Zhu and Dowling, 2002). Organisations are mainly dependent on resources such as financial capital, labour capital and managerial talent or local market knowledge to become competitive and develop successful growth strategies (Conner and Prahalad, 1996).Recruiting the right human professionals for particular position and responsibility is matter of knowing what skills to look for and where to look for them.(Coudron).There is "no one right way" to resource organisation with people as it all depends on the contingent characteristics of the organisation and the people who commit themselves to make organisation better. The contextual nature of recruitment and selection makes it necessary for the HR managers to be aware of the influence that are caused by the external environment.(Searle, 2003).

As each organisation follows different recruitment and selection methods they are defined to suit their organisational environment. Many authors have defined recruitment and selection in their views. Recruitment is "the overall process of taking on new staff outside the organisation". Selection is "the process, culminating in the decision to fill a vacancy from internal or external applicants, used by the organisation to choose the more suitable candidate from a pool of applicant." (Banfield and Kay, 2008) Recruitment is a process which aims to attract appropriately the qualified candidates for particular position from which is possible and practical to select and appoint a competent person or person" whereas "Selection is a process which involves application of appropriate techniques and methods with aim of selecting, appointing and inducting a competent person or persons". (Corbridge and Pilbeam, 1998). In simple terms recruitment is about filling a post from a number of applicants which are from outside the firm and Selection is done when the organisation makes a choice among the number of applicants which are already employed by the firm to fill the post. (Searle, 2003)

Recruitment and selection is the process which should be matched between the applicant and the job and it's mainly dependent on the organisational need and to look for the right person. Recruitment practices basically include identifying and attracting a group of potential candidates outside the organisation and to evaluate for employment. As these candidates are identified, the process of selecting appropriate employee for employment can be done. In simple terms it's described as evaluation of the candidate's qualification for a specified position. Many organisations use these practices to increase the likelihood of hiring individuals who have the right skills and abilities to perform well in the target job.(Bernthal, 2001)

2.1(a).HOFSTEDE's CULTURAL DIMENSIONS

Greet Hofstede's cultures explores the differences in "thinking and social action" at the country level between members of 50 nations and three regions. Hofstede identified four cultural dimensions from the respondents .There are five dimensions of Hofstede. The first dimension of Hofstede is power distance, the second is the uncertainty avoidance .The third and the fourth dimensions are individualism versus collectivism and masculinity versus femininity. The fifth dimension, long term orientation versus the short term orientation was developed from research conducted by Michael bond to accommodate non- Western orientations and has been adopted from the Chinese culture .(Harzing & Ruysseveldt, 2008).

2.1 (b).TROMPENNARS CULTURAL DIMENSIONS

Trompenaars also compared countries using cultural dimensions. He said that every culture has to deal with several universal problems which are: social interactions , passage of time and relationship to the environment, that unevil seven dimensions of culture. These dimensions describe the characteristics that each culture gives answers to the problems. These are measured on the basis of the responses by the managers from multinational and the international organisations. The five dimensions of Trompenaars are, the first dimension is Neutral versus Affective which is based on the expression. He measured this dimension by questioning "how would you behave if you felt upset about something at work? Would you express your feelings openly?". The second dimension is individualism versus communitarians which is same like Hofetede dimension on employees. The third dimension is universalism versus particularise illustrates individuals which is based on the attitudes towards universal principles e.g. telling the truth, following a rule. The fourth dimension is achievement versus ascription. Social status can be based either on the achievement or by ascription, like who they are. The fifth dimension is specificity versus diffuseness which is measured on the basis of an individual separation of private and public spaces. The sixth dimension is sequential versus synchronic time which is composed of two themes: ability to perform in a certain time frame and time orientation.(Harzing & Ruysseveldt,2008).

(a).HOFSTEDE CULTURAL DIMENSION

In the management context the first dimension power distance refers to the relationship between supervisors and the subordinates. It reflects to the extent to which the less powerful members of the organisation expect and accept that the power is unequally distributed. High power distance means that if the person is higher in hierarchy, those people are difficult to approach. Low power distance would be found in the organisation where the subordinates and the superiors are in collaborate relationship. (Harzing & Ruysseveldt, 2008).

Uncertainty avoidance is the second dimension of Hofstede. Hofstede define this dimension as "the extent to which the members of a culture feel threatened by the uncertain or unknown situations". He argued that the high uncertain avoidance is when the companies do not want to break their rule and want follow the same. For example, by a company need for regulation which endeavour to minimise uncertainties in the behaviour of its employees. When the employees think it is in the companies interest. In such a condition there is more stress. In low uncertainty avoidance work environment, the stress of work is low as the employees are less effected by uncertainty such as security of employment.(Harzing & Ruysseveldt, 2008)

The third dimension of Hofstede's culture is individualism and collectivism, in which it reflects that the individualism can be found in the organisation where the employees prefer to work independently and also praise to individual decision making. While collectivism can be seen in the organisation where the employees work as a team.(Harzing & Ruysseveldt, 2008).

Masculinity versus Femininity. This dimension is about the values such as assertiveness of the person (masculinity) and care and attention to the social surrounding (femininity). A masculine environment is generally in a place where success in the carrier is an important motivation. Feminine environment is seen where the wellbeing and the satisfaction of employees is tend to foster intuitive and consensus- oriented styles of management. (Harzing & Ruysseveldt, 2008).

The fifth dimension of the greet Hofstede's is the long term orientation which focuses on the degree of the society embraces or it does not embrace long term devotion to the tradition and the forward thinking values. The long term orientation is divided into two which are low long term orientation and the high long term orientation. High long term orientation shows that there is a long term commitment and there is respect for the traditions. On the other hand the low long term orientation indicates that the country has no concept of long term commitments and is not traditional orientation. (Harzing & Ruysseveldt, 2008).

In India the uncertainty avoidance is very high as; in India there is unwillingness to take risk and to accept the organisational change. So India follows the same process. Whereas India is low in the individualism which implies that the family and the group attainments take precedence overwork outcomes.(Sharma,1984).The power distance in India is very high which tells that the managers and subordinates accept their relative positions in the organisation hierarchy. So the superiors are hard to approach for the subordinates. Masculinity in India is very low which implies, that the employees are oriented towards personalised relationship and not towards the performance. Orientation.(kanungo and Mendonca, 1994). The fifth dimension of long-term versus short-term orientation, traditionally, India has long term orientation.(Tripathi,1990). The recent research results says that due to high pressure created by the recent liberalisation of the economic policies, the question of immediate survival has become more important". So now in In India there is short term orientation. (Budhwar & Sparrow).

2.2 Recruitment Practices:

There are several recruitment practices that are been followed and changing in every day today, to get the maximum performance of the organisation. In 1952 (Rodger) developed a seven-point plan which was followed and used by many organisation in that time. The Seven-point plan is based on seven important factors, firstly- physical make up which evaluates the candidates health, physique, appearance, bearing and speech abilities, secondly-attainments which describes the candidates educational qualification and experience, thirdly- general intelligence, fourthly- special aptitudes which evaluates the candidates mechanical and manual dexterity abilities, fifthly- the candidates interest, sixthly- disposition which test the candidates ability in his/her acceptability, influence over others, steadiness, dependability, and self reliance, and finally the candidates personal circumstances is also taken into account.

In later years of 1954 (Munro Fraser) developed a Fivefold grading system which evaluates the candidates ability based on five factors and they are impact on others, acquired qualifications, innate abilities which describes natural quickness of comprehension and aptitude for learning, motivation, and finally ends with adjustment which describes the candidates emotional stability, ability to withstand stress and the ability to mingle with people. As both of these are compared against themselves, the Seven Point plan has a longer pedigree whereas the fivefold grading system is simple and it's mainly concentrates on the employee's career. Though both of the practices of 1950's are familiar at those times, they lost its familiarity as time passed on.

In recent times Competency-Based approach is widely used by many of the organisations. The competency based approach is mainly a person based rather than job based and it concentrates on analysis of people rather than the analysis of the job. The competency based approach usually focuses on individuals' ability of leadership and working as a part of team, ability to motivate and perform ability of communication, personal drive and analytical ability. (Wood and Payne, 1998).The competency based approach is more similar to traditional practice of recruitment-Fivefold system, with few developments which increase employee relations and leadership qualities.

2.3 Sources of recruitment:

The sources of recruitment are mainly diverse into two sections, and they used by the organisation to attract the candidates, which are internal and external source. The objective of both the sources is to attract number of candidates for the job.

2.3 (a)Internal Sources:

Internal sources involves in recruiting the recruits within the organisation. The organisations has basically a view of recruiting within the organisation as they believe in holding on their talented employees which provides a higher level of satisfaction and better results.(Pophal, 2006). "Internal recruitment is the process of identifying current employees who may be suitable for newly created vacancies or for replacing staff who leave". (Banfield and Kay, 2008).This type of recruitment practice which is done within the organisation and not from outside the organisation, as the organisation know talent of their employees and they expect them to work in the organisation more efficiently.

Sources of internal Recruitment:

2.3(a) 1.Transfer:

In this the employees are transferred from the job either from the position or from the organisation to other branch. This is done because they want to lose their experienced employees and want them to work more efficiently in the organisation by transferring them to the different job and in the higher position. the transfer is done when the employee want to apply for the other position on the organisation, as they want to face the new challenges or are not happy in their current position in the organisation and they feel that they will get more return on investment in the new position.(Wheeler, 2005)

2.3 (b) External Recruitment:

It is the source of recruitment where the recruitment is "the process of identifying and attracting potential employees to an organisation to fill the current or future vacancies". (Banfield and Kay, 2008). Recruiting the candidate from outside the organisation is more difficult than recruiting within the organisation.

Sources of External Recruitment:

2.3 (b) 1.Advertising:

The advertisement for job vacancies are done in many ways through press, vacancy boards, television, radio and internet or by leaflet drops, posters and recruitment caravans.

2.3(b) 1.1.Press Advertising:

Recruitment through press advertising is basically done through local or regional or national newspapers. Professional journals and trade journals are also some of the important source of press advertising.(Corbridge and Pilbeam, 1998).In recent days many local newspapers are accompanied with supplementary copies of free newspapers which derives income from the advertiser rather than the readers. The main use of newspaper depends on kind of position to be filled and to target the right audience. National newspapers usually hold advertisements for senior positions and gives prominence to different types of advertising on each day. The main advantages of national newspapers are more frequent and it's possible to place an advertisement at relatively short notice but it works to be expensive when compared to local papers. The specialist journals are relatively cheaper than the national newspaper advertising but more expensive than local newspaper advertising. (Roberts, 2005)

2.3(b) 1.2.Television and Radio:

Live advertising such as radio and television are usually the domain of product advertising. Television advertising is very rare and is usually seen for large recruiters. The cost of television advertising is way expensive when compared with radio advertising.( Roberts, 2005). A limited amount of job and organisational information can be communicated by radio, but it can spark interest. (Corbridge and Pilbeam, 1998)

2.3(b) 1.3.Internet:

The development of new technology in the recent days has made interactive advertising with the help of internet. As internet is a multimedia facility, it provides the opportunity to have the best of both worlds in given written information. The internet is an effective mean of advertising for certain kind of staff particularly those who are likely to be the user of the internet.(Roberts, 2005). The use internet for recruitment purpose has grown massively in recent years and will continue to increase as more people started accessing to the internet. Small organisation usually ties up with local job advertising websites and posts their vacancies over there. (Green, 2004)

2.3(b)1.4.Leaflets Drops, Posters and Recruitment Caravan:

Leaflets are relatively low cost when compared to other ways of advertising, but they are believed to produce and deliver, but lacks in targeting a particular labour market. Leaflets drops might be a useful supplementary tool in recruitment campaigns where a substantial number of vacancies are usually filled. Posters are another adjunct to wider recruitment activity, which mainly depends on appropriate location and to grab the attention of the suitable applicants. Recruitment caravan is a mobile recruiting centre and the mobile unit are usually located in a public place for specified period of time which can attract more suitable applicants at different locations and it's more suited to multi site national recruitment. (Corbridge and Pilbeam, 1998).

2.3(b) 2.Waiting List:

Waiting list is usually a database which consists of tentative enquiries and application retained from previous recruitment activity and bank of suitable applicants which can be accessed when a vacancy occurs. The merits are low cost, resource efficiency and a shortened recruitment time scale, they have their own demerits as waiting list is problematic to manage and demand efficient and effective recording, filing and retrieval of systems. A personal information system will target the search of waiting list in relation to a person specification. (Corbridge and Pilbeam, 1998)

2.3(b) 3.Employment agencies and recruitment Consultants:

These practices have a profit motive and provide a wide range of services in return for fees. The use of employment agencies is the externalisation of elements of the recruitment and selection system which includes some administrative task, candidate attraction and applying pre-selection criteria. (Corbridge and Pilbeam, 1998).

2.3(b) 4.Job Centres:

Job centre applicants are more likely to be unemployed, as all the job centre offers services to employ people who are seeking a job change. Databases of candidates and their details are maintained which facilitates a speedy search on the basis of employer requirement. They provide a professional and executive service in addition to local services; Job centres have the right to access national and European labour markets to provide the right candidate for the right position. (Corbridge and Pilbeam, 1998).

2.3(b) 5.Career Service:

Career services focus on value testing and externalisation which provides advice for young people and career option and acts as a catalyst between the young person and employed organisation. These practices are used in where they are looking for trainee position or where limited experience is needed for the job. The motives of these practices are low cost to the employer and the targeting of a particular labour market. (Corbridge and Pilbeam, 1998).

2.3(b) 6.Direct Access to Schools and colleges:

This type of recruitment method involves in developing a mutual relationship with school and colleges which aims in encouraging a flow of suitable applicants. The employer usually establishes a professional network with the teacher, lecturers and career advisor which will provide a work experience to the young generation with aim of moulding. In return the college distributes the employer career literature which provides knowledge for the young generation for specific job opportunities to the student.(Corbridge and Pilbeam, 1998).

2.3(b) 7.Open days, Recruitment fairs and career convention:

Attracting applicants through open days, recruitment fairs and career convention is a proactive approach which is practised in recent days to compete in competitive labour market or recruitment difficulties. This way of recruitment source is beneficial for both the recruits and the organisation, as the organisation have a wider option of promoting their organisational image and to maintain an overt presence in the labour market where substantial applicants are present. The applicants also have a wider opportunity to learn about different organisations policy and principles which helps in deciding the best suitable organisation and position where they fit in. The open day format may range from informal drop in session to highly structured events which incorporate presentation, guided tours, sophisticated hospitality and work sampling. Recruitment fairs and career conventions are normally organised by educational intuition, training providers and they require employer participation in what it is effectively a shop windows of opportunity. (Corbridge and Pilbeam,1998).

2.3(b) 8.Incentivising Employee introduction:

Organisation can use employer incentives to recruit qualified applicants. An employ recommending a candidate who is offered employment, and achieves a satisfactory performance level can be rewarded for the introduction. (Corbridge and Pilbeam,1998).

2.4 Methods of selection

Selection involves many methods to choose the best candidate for the position available in the organisation. The nature of selection process varies as per the complexity involved in the particular position which is available in the organisation. Though there are many methods involved in, it's always important that the immediate supervisor is involved in the final decision making which ensures that the supervisor welcomes the new candidate. This way of approach is helpful for the candidate to have the opportunity of deciding whether they can work for the supervisor. (Weightman, 1993).

2.4.1Selection of interview methods:

Selecting people through interview is one of the main methods which are used widely. Many researches shows that selection by interviews produces a highly variable results in the aspect of reliability and validity.(Weightman, 1993).This method of selection works way cheaper and need for people are observed to be acceptable. There are basically three type's interviews which are used in the recent times. Firstly, Individual Interviews- which is the most familiar method and it involves face-to-face discussion and which provides establishment of close contact between the interviewer and the candidate. This method has more chances for biased or superficial decision which gives rise to a second interviewer involve in the process. Secondly, Interviewing panel- which involves two or more people gathered together to interview one candidate and one of the most typical situations is that in which a personnel manager and line manager meet the candidate at the same time. The main advantage of this type is, it avoids the superficial decision and provides a ways to share among the interviewers about the candidate and finally analyse the candidate's talent as a group of the panel. Thirdly, Selection boards-which is considered as more formal and its very similar to interviewing panels, but in this case there are number of parties interested in the selection decision. This type is advantageous in making decision on the spot but the prejudice of a dominating member of board can overwhelm the judgements of other members in the group and most of the questions asked to candidate are unplanned and delivered randomly. The question that are been asked during the interview is based into two types as Unstructured interview and Structured interview. In unstructured interview the interviewer generally questions about the candidates work history and details about his/her CV, aspirations and personal circumstances. These types of interview are usually recorded and the questions are usually unstructured. Though the questions are unstructured the intention of the interviewer is to listen to the response of the candidate and to analyse his/her capability and usually this type of interview provides a comfort to the candidate as there are good chances of bringing out the real ability of the candidate. Unstructured interviews mainly depend on the ability of the interviewer to analyse the capability of the candidate. Structured questions of interview are the most effective but less common in use and they are subdivided into two categories- Situational interview and behavioural interview. Situational interviews usually questions about some hypothetical future situation and asks the candidate to describe how they would handle it and behavioural interview questions about the past of the candidate which would describe his/her ability used in the past work. Researches prove that the behavioural interviews are more effective than the situational based interview. (Armstrong, 2006).

2.4.2 Assessment Centres:

Assessment centres also play a vital role in method of selection and it seems to be used by many of the organisation in the recent time. Assessment centres are more often used for internal promotion/assessment and sometimes to select candidates externally as well. Assessment centres usually involves in assessing multiple ability of the candidate by multiple assessors which can provide an all-round analyse of the candidate. The analysis of an individual is helpful for the organisation at both initial and future stages, to judge the individual's ability on different fields. Though these processes are time consuming, they give a clear picture of an individual which matters in promotion/reward schemes and it cuts out the pass off, if an individual tries to cheat the organisation.(Cooper and Robertson, 1995).

2.4.3 Selection Tests:

Selection test are used in providing a more valid and reliable evidence of intelligence, personality characteristics, abilities, aptitudes and attainments that could be obtained from an interview. Psychological tests are mostly involved in finding out these factors. A psychological test is defined as "A carefully chosen, systematic and standardised procedure for evolving a sample of responses from candidates which can be used to asses one or more of their psychological characteristics with those of a representative sample of an appropriate population".(Smith and Robertson, 1986).The psychometric tests are usually used to measure the mental ability of an individual which are helpful for the interviewers to predict the result of an job allocated to the individual and his/her abilities. (Armstrong, 2006)

2.4.3(a)Types of Tests Involved in Selection:

In recent days the organisation are looking for 'best in fit' candidates and that requires an extensive test methods to be followed to find the right individual. Firstly, Intelligence test- which tests the individual for ability to abstract thinking and reasoning. There are few difficulties involved in intelligence test and wherein usually the intelligence tests are to be based on a theory of what constitutes intelligence and then have to derive a series of verbal and non verbal instruments for measuring the different factors of intelligence. Secondly, Personality Test which usually predicts individuals behaviour in a particular role. There are many different theories explaining personality and there exists several methods of personality testing. They usually include self report personality questionnaires and other questionnaires which measure the interest, values or work behaviour. The personality testing is explained by a Five factor model developed in 1989.(McCrae and Costa, 1989) and that includes in identifying extrovert/introvert, emotional stability, agreeableness, conscientiousness and openness to experience of an individual. Thirdly, Ability test- which measures the job related characteristics such as number, verbal, perceptual or mechanical ability. Fourthly, Aptitude test which are designed to predict the potential of an individual to perform a particular job. They include numerical aptitude, mechanical aptitude, clerical aptitude and dexterity. Finally, Attainment Test- which measures the ability or skill of an individual that has been already attained by the individual in his/her previous job/training experience. (Armstrong, 2006).

2.4.4 Interpreting Test Results:

The test results are usually interpreted basically by two methods namely Norms and The normal curve. In norms the result of an individual is compared with result attained by the whole group of candidates. The norms method uses a percentile scale to measure the result of an individual. The normal curve is usually an bell curve and the results of the group is predicted to be lie in this pattern where there will be a large number of individuals in middle area and smaller number of individual lying on both the ends of the bell curve which gives the minimum and maximum scores of the individual. (Armstrong, 2006)

2.4.5 Screening

This method is developed as it attracts people to apply in the organization. In this the suitable applicants will increased as the candidates who are unsuitable will be decreased. So it decreases the number of applications with high suitable applicants. The screening technique is not taken as a means of improving the decision of selection but refining the applications into quantity which is manageable.(Robert, 2005)

The main techniques of screening are as follows-

2.4.5 (a) Telephonic screening

It is the modern technique of screening. It is suitable for those where the telephone contact is there, such as the helpline position.(Roberts, 2005)

2.4.5 (b) Application forms and curricula vitae

It is most common and the popular technique of selection. The applications can take the form of a standard application or can even form a C.V. The advantage of this technique is that it is cheaper and the faster, as there is no delay in sending. The application form is the tool which is misused. If it is carefully designed it can become effective in the selection process.(Roberts, 2005)

2.4.5(c) Bio-data

This technique is very less used in the selection process. It is the biographical data of the people, so the simple assumptions of the fast actions and the behaviour of the person helps in predicting the future behaviour and the patterns.(Roberts, 2005)

2.5 Performance Management and appraisal:

Performance management is defined as a systematic process for improving organisational performance by developing the performance of an individual and the team. The main aim of performance management is to create a high performance culture wherein the individuals and the team take responsibilities for the continuous improvement of their skills and business process which as a result produces a good performance. In other words performance management aims in aligning an individual's objective to the organisational objective which is beneficial for both the organisation and the individual. The performance management can also be described as a continuous self renewing cycle wherein planning, acting and reviewing forms the cycle structure. In Planning the performance of organisation is usually concluded and the necessary developments are been suggested to improve their performance for future. Acting involves in managing the performance throughout the year and finally Reviewing includes the assessing the progress and achievements of the organisation and again jumps to the planning stage for better results. Performance of the organisation is usually measured on vital factors such as achievements of the objectives that were taken, competency, quality, contribution to the team, customer satisfaction, working relationships, productivity, flexibility, skills/learning targets, aligning personal objectives with organisational objectives, business awareness, and financial awareness. The rating of the performance are usually rated in alphabetical (a,b,c,..etc) or by numerical valuation(1,2,3,..etc). There are few other rating scales which are used by the organisation which are exceptional performance, well balanced performance, barely effective performance, and unacceptable performance. Some organisation rates their performance in five levels and other rates it in three levels. In the recent survey conducted by CIPD in 2004 shows that there is no evidence that which level rating is superior to another. When a company performs below its target levels, the performance of an individual might lack which totally affect the overall performance of the organisation. These situations should be handled carefully as the organisation might receive a back fire response from the individual. Managing the under-performer generally uses advice suggested in 1989(Handy) which is "applauding success and forgiving failure". Mistakes should be used as an opportunity for learning and in improvement for the future.(Armstrong, 2006).

2.6 Conclusion:

The research study involves in Recruitment and Selection policies which explains the appointment of the most suitable person for a given post, based on a candidate's skills. The fundamental part of the process is to ensure that standards of fairness and equality are maintained. The business environment is constantly changing, and the way in which organizations manage recruitment and selection has to match those changes. The study also includes different sources of recruitment and selection. The research study also includes performance appraisal where in recruitment, selection and performance are interlinked between each other. Performance Appraisal is another process of obtaining, analyzing and recording information about the relative worth of an employee where in the objectives of the performance appraisal is measuring and improving the actual performance of the employee and also the future potential of the employee. The Performance Appraisal is also useful in measuring the gap between the actual and the desired performance. It helps in strengthening the relationship and communication between superior - subordinates and management - employees for exercising organizational control.

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